South Kentucky RECC Disbursing More than One Million Dollars to Members

For the second year in a row, the Board of Directors of South Kentucky Rural Electric Cooperative Corporation has announced the co-op is mailing $1,604,397 in capital credit refunds to members this week. The refunds from South Kentucky RECC total $1.4 million for the years of 1986, 1987 and 1988. In addition, more than $200,000 is being returned to members from East Kentucky Power Cooperative, which generates the electricity and is owned by South Kentucky RECC and 15 other distribution cooperatives across the state. Capital credit refunds from SKRECC and East Kentucky Power will be delivered in one check to members. A member’s share of this refund is based upon the amount of electricity used in the specified years in relation to the electric usage of all members at that time. In the world of co-ops, when revenues are greater than expenses, the difference is called a margin, and shares are not paid to investing stockholders, as an investor-owned utility would do. They are shared among the member-owners of South Kentucky RECC—the people who get their electricity from the co-op. South Kentucky RECC CEO, Ken Simmons, said this is just one of the many benefits of being a member-owner of an electric cooperative. “It gives the Board and myself great pleasure to be able to send these patronage capital checks to our membership. It affirms what our mission statement says – that we were ‘formed for people, not profit.’ We believe in this mission statement and strive to do the best that we can for our members.”

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